Acknowledging that Yahoo still has a way to go in rebuilding its ad-tech services, Burke did say that the company hasn't neglected that side of the business. That said, the attention has largely been on developing and refining the consumer-facing parts first, and then having the ad support follow.
"As Marissa has said since she became CEO, the focus has been on creating a better consumer experience around everything from weather to mail to [photo-sharing property] Flickr," Burke said. "Now that we've gotten traction there, we can turn more attention to the display business."
In particular, Burke said he has been focused on recruiting for the display services he oversees, noting that Yahoo has hired more than 150 engineers over the past year to work on the company's ad platforms. The addition of AdMovate's technology and small team will fit squarely with the buy-side tools Yahoo wants to restore.
While Burke wouldn't say if there are similar deals in the works to boost Yahoo's display business -- "We're always looking at possible acquisition targets across the board," he said -- he did say there will be more products being rolled out around programmatic, video and native advertising in the next few months.
As an indication of what kinds of things to expect from Yahoo, Burke highlighted the cost-per-click-based Stream Ads product for video that was released during Yahoo's NewFront presentation this past spring as an example of what his team is working on.
AdMovate is Yahoo's 17th acquisition this year. Apart from the blogging network Tumblr, which cost Yahoo $1.1 billion, most of the other purchases have been relatively small and focused either on social media or mobile, or some combination of the two, such as the purchases of mobile gamers Loki Studios and Playerscale.
"The acquisition of AdMovate makes good on CEO Mayer's promise to further invest in ad technology less than 24 hours after reiterating this priority on the quarterly earnings call." said Dan Salmon, an analyst for BMO Capital Markets. "At the same time, the acquisition also helps support the company's No. 1 priority of becoming a mobile-first company. And it also continues Yahoo's focus on acqui-hiring smaller groups of engineers, rather than making large buys (Tumblr excepted), which tends to make integration and culture-fitting a smoother process."
It's not clear how much of a shot in the arm AdMovate will offer Yahoo's existing display properties, but the effort has been enough to convince analysts Mayer is taking a specific step to address the competition seen as having eclipsed Yahoo's pioneering ad-tech services.
"The AdMovate deal is part of Yahoo’s strategy of enhancing its ad-tech stack, particularly in mobile, where it’s playing catch-up to the likes of Google and Facebook," said Youssef Squali, managing director at Cantor Fitzgerald.